Microsoft recently wrote off a $900 million loss on its ARM-based Surface tablets. But according to Computerworld, the company intends to double down on its bet in hardware devices. CEO Steve Ballmer says that "Going forward, our strategy will focus on creating a family of devices and services... We will design, create and deliver through us and through third parties a complete family of Windows-powered devices." Look to Microsoft to produce more new hardware as it fights for market share in the handheld space. Ultimately Microsoft intends to develop a common code base across all devices -- from servers to desktops to handhelds -- that supports "write once, run anywhere."

Analyst Frank Gillett of Forrester Research says that Microsoft is fully committed to shifting away from its traditional emphasis on packaged software and into handheld devices and services (such as subscription software). He sees this as a fundamental reorientation, and says that "No matter what, it's a messy process."